Breaking Down Real Estate’s Banking Crisis Nightmare
“How did you go bankrupt?” “Two ways. Gradually, then suddenly.” — Ernest Hemingway, The Sun Also Rises In the beginning, God created Silicon Valley Bank. The heavens and earth flooded with venture-backed startups fueled by low interest rates and easy money. The bank had more cash than it could lend, and with rates near zero, […]
The post Nine days in hell: Inside the lending crisis that rocked multifamily appeared first on The Real Deal.
How To Find The Next Silicon Valley Bank (nysearca:xlf)
Amidst the collapse of Silicon Valley Bank, Silvergate, and Signature Bank I think it's important to take a look at what caused the downturn for these banks along with the government's reaction to see if similar institutions will run into these issues. My belief is that there are many other institutions which face similar issues to that of Silicon Valley Bank and the goal of this article is how to identify which banks might be the next to fall.
Crisis Induced Deposit Flight Could Reshape Regional Banks
The failure of Silicon Valley Bank (SIVB) and Signature Bank (SBNY) has increased concerns of potential deposit outflows across the banking system, leading investors to scrutinize banks that may face similar issues. Amidst the crisis, stakeholders and the media chose to focus on banks with large, unrealized investment security losses and a higher mix of uninsured deposits on the notion that they are more susceptible to deposit outflows, triggering losses and impacting regulatory capital.
Billionaire Investor Barry Sternlicht Says The Fed’s Rate Hikes Are Like Using A ‘steamroller’ To ‘kill A Small Fly’ And Warns The Economy Is About To ‘hit The Wall’
Starwood Capital’s CEO Barry Sternlicht thinks the Fed created the banking crisis by itself, and that its interest rate hikes will hurt the economy. “Obviously he [Fed Chair Jerome Powell] didn’t need to do what he did,” he told CNBC’s Squawk Box on Thursday about the latest interest rate increase this week, the ninth since 2022.Sternlicht, whose hedge fund manages over $100 billion, said that Powell’s argument that the economy will not slow down due to the current banking crisis was flawed.
Are Recent Bank Failures A “u.k. Ldi Moment” For The U.s. Financial System?
By Andrew Okrongly, CFA Director, Model Portfolios The turmoil within the U.S. banking system, started by the sudden failure of Silicon Valley Bank and Signature Bank, appears far from over. While regulators have taken extreme measures to contain the upheaval, uncertainties remain for regional banks in the United States. Where do we go from here? [...]
The post Are Recent Bank Failures a “U.K. LDI Moment” for the U.S. Financial System? appeared first on ETF Trends.
Data Shows Exactly How Big Banks Benefited From Collapse Of Silicon Valley Bank And Signature Bank - Spdr S&p Regional Banking Etf (arca:kre)
To no one's surprise, the ongoing crisis in the banking system started with run-ins on deposits held by the now-collapsed Silicon Valley Bank and Signature Bank, as underlined by recent data from the Federal Reserve. read more.
Paypal Stock: Overblown Fears (nasdaq:pypl)
PayPal Holdings, Inc. (NASDAQ:PYPL) has suffered the brunt of sellers regaining the initiative after its FQ4'22 earnings release. Accordingly, PYPL declined more than 20% through last week's lows. We gleaned that PYPL also suffered from the recent worries over the collapse of Silicon Valley Bank or SVB (SIVB) and Signature Bank (SBNY), as seen in PYPL price action in the week of the banks' failure. Despite posting a solid FQ4 performance, PayPal buyers seem unwilling to lift PYPL's valuation, taking profits quickly after its earnings release.
Opinion: Svb's Sudden Collapse Wasn't A Social Media Triggered 'twitter Run.' It's What People Always Do When Their Money Is Threatened.
Technology doesn't drive the speed of a bank run. It's how quickly people panic. :
One prevalent narrative spreading in Silicon Valley is that we are witnessing a new type of bank run — a “Twitter run” — driven by technological innovations in banking and direct messages on social media. Nervous venture capitalists encouraged their tech-startup clients to abandon their long-time, valued business partner, Silicon Valley Bank
SIVB,
-60.41%
en masse, so the narrative goes.
Igm Financial Inc. (tse:igm) Pays A Ca$0.56 Dividend In Just Four Days
Readers hoping to buy IGM Financial Inc. ( TSE:IGM ) for its dividend will need to make their move shortly, as the...
Ares: 40 Big-yield Bdcs, Silicon Valley Bank Fallout (nasdaq:arcc) | Seeking Alpha
Business Development Companies ("BDCs") are like banks, only riskier. And some BDCs are heavily concentrated in the venture capital ("VC") space, just like Silicon Valley Bank (SIVB) that was recently taken over by the FDIC following an ugly bank run. In this report, we review Ares Capital (NASDAQ:ARCC) (including its investment industry exposures and risks) and then compare it to 40 other BDCs, including four in particular that are heavily concentrated in the VC space. We conclude with our strong opinion about investing in BDCs, Ares Capital and VC-focused BDCs in particular.